In July 2017 Volvo announced that from the year 2019 all cars that it manufactures will be either fully electric or hybrids. Volvo would as such become the first large automobile manufacturer to so boldly embrace the electrification of cars, and yet in a fast growing market where brand names like Tesla are increasingly becoming well recognized brands, Volvo's move does not come as a complete surprise.
Key Questions Answered
- How fast is the EV market growing?
- Why is the EV market growing?
- What are the main challenges facing the EV market?
- Does growth in the EV market mean pollution levels will decline?
- Establishes the pace at which the Electric Vehicle (EV) market is growing.
- Explores why this growth is taking place.
- Analyzes the main challenges facing the EV market.
- Discusses whether the growth in the EV market will have a strong impact on pollution reduction.
- In the past several years, the car stock growth of the EV market has consistently been above 50%.
- In March 2017 scientists were able to invent a new battery which has three times the energy density of lithium-ion batteries.
- States have sought to boost the EV market in a number of ways. The UK and France for example have announced a ban on the sale of new fossil fuel powered vehicles from the year 2040 onwards.
Electric Vehicle market growing rapidly
Electric car stock grew by 60% in 2016
As Tesla?s popularity grows Volvo and Jaguar Land Rover decide to go completely electric
Reasons for growth of EV Market
Improving technology and infrastructure making EV?s a viable option
Battery technology improving, but charging stations need further development
Governments encouraging growth via subsidies and prohibitions
Rising climate change awareness boosting demand for eco-friendly policies
Challenges facing the EV market
Over-reliance on government support and subsidies
Decline in crude oil prices making fossil fuel-run vehicles competitive again
Lack of developed infrastructure hurting image of EV
Growth in EV market will not necessarily cause a strong decline in pollution
The largest EV market generates most of its electricity from fossil fuels
Construction of EV batteries not eco-friendly
Move towards EV dominance will hit a stumbling block if state-level support ends
Ask the analyst
List of Tables
Table 1: Electric Cars (including plug in hybrids) market share by country, 2016
Table 2: Top 5 global battery electric vehicles and passenger car?s markets, 2017
List of Figures
Figure 1: Tesla Motors, Net Income and Total Cost of Revenue, $ millions, 2012-2016
Figure 2: Number and Types of Electric Charge Stations in the US, 2017
Figure 3: Price of Crude Oil, Dollars per Barrel, 2011-2017
Figure 4: Price of unleaded petrol in the UK, $ per liter, 2011-2016
Figure 5: Power generation segmentations in China by source, 2011-2015
Figure 6: Power generation segmentations in the United States by source, 2011-2015